Island Hopping With A High Net Worth — Invest In Hawaii Real Estate Like Zuckerberg And Benioff

Hawaii's picturesque landscapes and serene lifestyle have attracted billionaire investors like Mark Zuckerberg and Marc Benioff, who are snapping up prime real estate across the islands.

Zuckerberg, CEO of Meta Platforms Inc. META, is building a $100 million compound on Kauai. It includes two mansions, a network of tree houses, a gym, pools, saunas and an underground shelter with living space, a mechanical room and an escape hatch.

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Benioff, CEO of Salesforce, quietly acquired about $100 million in land on Hawaii's Big Island. He plans to use approximately 165 of the 600 acres for his family, with the remaining plots developed into a community center and an affordable housing complex.

Other high-net-worth people who own luxury Hawaii real estate include Jeff Bezos, Oprah Winfrey and Larry Ellison.

The trend has sparked both fascination and concern, highlighting the allure of Hawaii's property market.

It's not just the ultrawealthy who can own a slice of paradise. With the right strategies and resources, regular people can also find opportunities to invest in Hawaiian real estate, making their dream of island living a reality.

While having significant capital is advantageous, understanding the market is crucial. Prospective investors should research current trends, pricing and demand across different regions. Analyzing sales data, average home prices and rental rates in various neighborhoods is essential. Consider factors like proximity to beaches, schools, and amenities. 

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Hawaii has the highest housing costs in the U.S., with Zillow pegging the typical home value at $838,873 and the Census Bureau estimating the monthly housing cost at $2,005.

Home prices in Hawaii rose 14% over the last year, with a median price of $783,700, according to real estate brokerage Redfin. The number of homes sold increased by 11.6% from last April to 1,143.

When property appreciates quickly, it creates an opportunity to invest in the rental market. Investors who hold onto a rental for the long term will see high rates of return because the supply is low and demand is high. 

Strong appreciation rates and market dynamics favor investors with a long-term horizon, according to Oahu real estate company HiEstates. Between 1985 and 2022, median sales prices for single-family homes and condos on Hawaii's third-largest island rose by 596.7% and 467.9%, respectively.

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